Why Is ZEC Surging? This Metric May Explain It

Zcash (ZEC) has recently surged, outpacing major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). However, the growth of ZEC's user base remains unclear due to its privacy model, which complicates the evaluation of adoption. The spike in visible transactions was largely attributed to a temporary event—an inscription wave—that briefly raised daily transactions to over 70,000, though activity remained concentrated among a small group of users. Conversely, Monero (XMR), another privacy coin, has maintained stable transaction levels at 20,000 to 30,000 daily, indicating that ZEC's rise is not part of a broader interest in privacy coins but is tied to factors such as liquidity and supply constraints. The increasing shift towards shielded transactions within ZEC is significant, with the shielded supply quadrupling in recent years. Despite these adjustments, transparent metrics reveal no uptick in new users, leading to speculation that the price may be experiencing a premium that does not reflect actual network activity.

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